Analysts Revise Diamondback Energy’s FY2025 EPS Forecast Down

Equities research analysts at Capital One Financial have adjusted their earnings per share (EPS) estimates for Diamondback Energy, Inc. Following a report issued on November 12, 2023, analyst B. Velie revised the forecast for the oil and natural gas company’s FY2025 EPS to $13.01, down from the previous estimate of $13.25. This revision contrasts with the consensus estimate for Diamondback Energy’s current full-year earnings, which stands at $15.49 per share.

Analysts also projected earnings for Diamondback Energy’s upcoming quarters. They estimate EPS of $2.68 for Q4 2025, $2.82 for Q1 2026, and further increases in subsequent quarters, reaching $3.16 for both Q3 and Q4 2026. For FY2026 and FY2027, the forecasts are set at $12.27 and $14.27, respectively.

Recent Quarterly Performance

On November 3, 2023, Diamondback Energy reported its quarterly earnings, achieving an EPS of $3.08, which surpassed the consensus estimate of $2.94 by $0.14. The company’s net margin was recorded at 27.32%, accompanied by a return on equity of 9.57%. Revenue for the quarter reached $3.92 billion, significantly exceeding analysts’ expectations of $3.48 billion, and marking a 48.4% increase compared to the same period last year.

Diamondback Energy’s stock opened at $144.38 on November 10, 2023. The company has experienced a 52-week low of $114.00 and a high of $186.07. Its market capitalization stands at $41.37 billion, with a price-to-earnings (PE) ratio of 10.03 and a beta of 0.99. The company’s financial ratios include a debt-to-equity ratio of 0.35 and current and quick ratios of 0.62 and 0.60, respectively.

Investor Activity and Dividend Announcement

Recent changes in institutional holdings indicate a strong interest in Diamondback Energy. Wellington Management Group LLP increased its stake by 14.0% during the third quarter, now owning 1,860,827 shares valued at $266.3 million. Other notable investors such as NorthRock Partners LLC and Prudential PLC also raised their holdings by 19.7% and 225.6%, respectively.

Additionally, Diamondback Energy announced a quarterly dividend of $1.00, payable on November 20, 2023, to shareholders of record as of November 13, 2023. This dividend reflects an annualized total of $4.00 and a yield of 2.8%. The company’s dividend payout ratio currently stands at 27.80%.

Diamondback Energy, headquartered in the Permian Basin in West Texas, specializes in the acquisition and development of unconventional oil and natural gas reserves. The firm’s focus includes the Spraberry and Wolfcamp formations of the Midland Basin, as well as the Wolfcamp and Bone Spring formations in the Delaware Basin.

As the energy sector continues to evolve, the adjustments made by analysts and the company’s robust quarterly performance will be closely monitored by investors and market analysts alike.